They are still the backbone of the economy. Yet some are losing out in market completion, or failing to cater for public needs. They have undergone reforms. But this time, reforms must go deeper. Welcome to People In the Know. I'm Lin Shaowen, with the second installment of our reform series. China is now mulling over a new round of SOE reforms. Measures include introducing more private capital in areas traditionally dominated by the state sector, and securing state assets so that the market can play a greater role. President Xi Jinping has held several meetings on the future direction of SOE reforms, and stressed the importance of avoiding the erosion of state assets and increasing their value in public service.So what hurdles lie ahead for SOE reforms? How can the private sector forge greater synergy with SOEs in these reforms?  Zheng Chenguang speaks to Dr. Edward Tse, founder and CEO of Gao Feng Advisory Company, based in Hong Kong; and Professor Yao Shujie, Head of School of Contemporary Chinese Studies, University of Nottingham in the UK.